Chronic hepatitis B (CHB) remains a leading cause of liver disease worldwide, with liver fibrosis being a key determinant of long-term prognosis. This narrative review provides a detailed examination of the pathogenesis, diagnosis, and management of liver fibrosis associated with CHB. The review outlines the complex mechanisms driving fibrosis, including viral replication, immune response, and hepatic stellate cell activation, which collectively contribute to liver damage. It also evaluates current diagnostic techniques, such as non-invasive biomarkers, imaging modalities, and liver biopsy, emphasizing their clinical utility and accuracy in assessing the fibrosis stage. The management section covers antiviral therapies, their role in halting disease progression, and emerging antifibrotic agents to reverse fibrosis. Additionally, the review discusses the importance of early detection and tailored treatment strategies in improving patient outcomes. By synthesizing the latest evidence, this review provides insights into the evolving landscape of chronic hepatitis B-related liver fibrosis and highlights ongoing challenges in its diagnosis and management.